Yehu Microfinance Trust

Kiva conducts regular, ongoing monitoring of all Field Partners, but only posts status updates here in response to relevant, major changes at the partner.

Partner Description:

Yehu Microfinance Trust was founded in 1998 as a project of CHOICE Humanitarian Kenya, a U.S.-based NGO. The program began by mobilizing member savings, and in 2000 started issuing loans.

In July 2007, Yehu became a separate entity from CHOICE and was registered as a trust. Since then, Yehu has expanded to eight branches, covering Kilifi, Mombasa, Kwale and Taita Taveta County.

Yehu targets rural entrepreneurs in Kenya’s coastal province, with a keen focus on women. Yehu offers eleven existing “responsive” credit products through the Grameen group lending methodology. Yehu is developing three more loan products for those working in the bio-gas and dairy sectors, as well as an individual loan product.

To provide responsive financial services to clients in Kenya’s uncertain agriculture environment is an integral part of Yehu’s mission. The flexible features of these products help to mitigate particular challenges faced by the clients’ agricultural-based activities.

Yehu operates based on an innovative sub-branch organizational model. A sub-branch is defined by both geographical area and number of clients. In sub-branches, all planning and cost allocations are scaled down to the most basic levels. This allows for greater focus, control and tracking of the portfolio and financial indicators at the source of value creation.

Going forward, Yehu intends to develop a portfolio of renewable energy loans, adding solar panel loans to its bio-gas loan offerings. Yehu also seeks to to expand into Lamu County by next year, establishing new branches and sub-branches to meet the needs of clients in these areas.

Status Update - September 11, 2011

As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a re-assessment of the level of risk posed by this institution.

During this re-assessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff.

The information gathered during this process, together with the Kiva's new risk rating system and half-star support, has led us to revise Yehu's risk rating from 2 to 3 stars. The analysts have found that Yehu's risk variables, reviewed in the new risk rating model, were most representative of a 3-Star rating.

We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio.

Yehu has been informed of our analysts’ findings and their corresponding change in rating.

Other Information Sources

Yehu Microfinance Trust's Mission Statement

To combat poverty by empowering poor rural entrepreneurs in Kenya to help lift themselves out of poverty through enhanced accessibility to sustainable financial services.

Why Kiva Works With Yehu Microfinance Trust

Yehu shares Kiva’s commitment to providing financial services to poor people, especially women, in remote areas where access to microfinance is limited. The organization is an emerging player in Kenya, especially in the coastal region, which is considered to be one of the poorest areas and most underserved by microfinance institutions.

Yehu’s main competitive advantage is its rural penetration, its lower starting loan sizes, and its innovative loan products that include credit for goat meat sales, poultry, water, micro-insurance and education. Kiva lenders’ funds will help the organization offer its services to a greater number of poor people in the coastal region and other rural areas of Kenya.